Am currently trading the 1 min chart using the following indicators:
1)EMA 5 & 10
2) Bollinger band
3)SAR
4)ADX 9
5)RSI 9
6)DMI 9
7)MACD 12,26,9.
The problem i am having is that by the time i wait for the ADX to rise above the 20 line, the trend tends to move in the opposite direction. So although i do make profits on certain trades i seem to be losing off all my profits due to situations like that.
Are these indicators suitable for trading on the 1 min chart and what are the changes or indicators that i can use to trade the 1 min chart well?
Trading on the 1 minute chart you will get alot of signals, but many false ones - the ‘noise’ of the market. Personally, the shortest timeframe I use is the 15 minute chart. You might also want to trim down the number of indicators you are using, more is not always better.
Thanks for the reply. If i do stick to trading the one min chart, which indicators do you think i should retain or do you know of any good systems to day trade?
Basically ditch the indicators, they are lagging, ie your 10 ema is
working off data 10 mins ago. The same for the rest. Maybe
keep the BB for overbought, oversold, indication.
Scalping is an art, you need to get down to the price action, mark
out which way the trend is going & stick with it. The market moves
in sawtooths & you will see that even more pronounced at 1M timescale.
Move out to the 5M 15M look at the trend & which way the last candle
is going.
Especially down at low levels the old maxim “the trend is your friend
applies”
The other concern is brokers, most do not like scalping & news trading so
they have implemented ways to stop scalpers being effective, ie too
long for market order intialisation, etc.